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Gold and Silver to Head Lower, Crude Oil Trades Sideways

Published 02/08/2023, 03:44 AM
Updated 07/09/2023, 06:31 AM
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Gold bearish engulfing candle on the daily chart & then the weekly chart suggested the 3-month rally in Gold just ended.

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Silver huge bearish engulfing candle on the weekly chart is a sell signal as we take out all the candles for the 7 weeks last week.

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Crude Oil WTI Futures April unexpectedly recovered all of Friday's steep losses yesterday.

Today's Analysis

Gold crashed almost $100 from Wednesday's high in just 2 days, leaving a brutal bull trap for those who bought into longs over the past 3 weeks (& did not take the profit).

Further losses look very likely, with a break below minor support at 1855/50 acting as the sell signal to target 1830/25. Eventually, we could fall as far as 1790/80.

Shorts at 1882/85 worked perfectly, with a high for the day exactly here. Today we can try this again with a stop above 1890. A break higher, however, can target 1896/98.

Silver is holding the most important support of the week at 2210/00 perfectly all week so far. A low for the day exactly here yesterday, but longs need stops below 2185. A break lower is a sell signal & sees 2200/2220 act as resistance to target 2170/60 & 2135/30.

Longs at 2210/00 can target resistance at 2260/70 for profit-taking. Shorts need stops above 2280. Strong resistance at 2300/2310. Shorts need stops above 2320.

WTI Crude shorts at 7590/7630, unfortunately, stopped above 7660 for a buy signal seeing 7640/00 act as support, targeting 7720/50. A high for the day here, but further gains are possible today to resistance at 7840/80. Shorts need stops above 7910. A break higher can target the February high at 7940/70, then 8020/40.

Support at 7560/30. Longs need stops below 7490.

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